Ethereum (ETH) and Bitcoin (BTC), which are driving the recovery in the cryptocurrency market, are back in the green and so are most of the altcoins.
The second-largest cryptocurrency by market cap has experienced bullish momentum, rising by 27 percent in the previous week and 13 percent in the last 24 hours.
The top smart contract platform Ethereum, which is starting to show signs of strength, is preparing for a significant surge, according to a well-followed crypto analyst. After ETH broke through its resistance at $1,281, pseudonymous cryptocurrency strategist Altcoin Sherpa informs that he anticipates a significant surge for Ethereum in the following weeks.
The crypto analyst cautions that the gain is unlikely to mark the beginning of a new bull cycle, despite his short-term bullishness on the top altcoin.
“Here are some levels. I think that we see something like $1,700-$1,900 in the coming weeks. This is NOT a macro reversal, in my opinion, just another bear market rally. Exponential moving averages flipped bullish on the four-hour chart for the first time since end of March.”
At the time of writing, Ethereum is trading at $1,522. The potential upside for ETH is almost 40% if the price moves to Altcoin Sherpa’s objective.
What about ETH/BTC?
The cryptocurrency strategist claims that when comparing Ethereum to the most valuable digital asset, Bitcoin (ETH/BTC), the pair has also destroyed its immediate resistance, which is good news for altcoins.
The ETH/BTC chart is used by traders to predict how cryptocurrencies will perform in comparison to Bitcoin. A bullish ETH/BTC trend indicates that alternative currencies are probably about to outperform Bitcoin.
And the ETH/BTC pair is currently trading at 0.064 BTC ($1,342), which puts it just shy of Altcoin Sherpa’s next target of 0.065 BTC ($1,363).
He believes that altcoins will continue to have a brief mini-run if ETH/BTC has bottomed out in the near term. But in his opinion, this is still not the macro bottom as he anticipates that these short-term bear market rallies will occur periodically.